Table of contents:
Learn about destination-based sales tax (Streamlined Sales Tax) amnesty
Overview
The Department of Revenue encourages businesses to comply with the State of Washington's
tax laws and to come forward to voluntarily register and pay prior tax obligations.
This applies to all taxes administered by the Department.
Who is liable for Washington State taxes?
Companies doing business in this state are subject to Washington tax laws when nexus is established. A few examples of nexus-creating activities include, but are not limited to (Washington Administrative Code (WAC)
458-20-193 and
458-20-194):
- Soliciting sales in this state through employees or other representatives
- Installing or assembling goods in this state, either by employees or other representatives
- Maintaining a local stock of goods in this state
- Renting or leasing tangible personal property
- Providing services
- Making repairs or providing maintenance or service to property sold, either by employees, agents or other
representatives
Benefits of voluntary disclosure
- In most circumstances, a "look back" period of four years plus the current year.
- Penalties will be partially or fully waived.
- Qualified companies may remain anonymous until an agreement is signed.
If your business is discovered through the state’s normal investigation and audit procedures, you may be liable for tax, interest, and penalties of 35 percent of the tax due for a period of seven years plus the current year. (WAC
458-20-228
and
458-20-230).
Description and process
The voluntary disclosure program allows companies to come forward by providing
a detailed written description of their past activities. The "look back" period
is limited to four years plus the current year through the last complete quarter.
Penalties will either be partially or fully waived, and interest will be imposed
at the statutory rate. Immediately upon signing an agreement (
see
sample agreement), companies are required to complete a
Master Business
Application and pay a $15 fee.
Qualifications
- You must not have been previously contacted by the Department.
- You must not currently be registered or reporting taxes to the Department.
- You must not have engaged in evasion or misrepresentation in reporting tax liabilities or other tax requirements.
All businesses are encouraged to come forward voluntarily if they have a reporting
liability with the Department.
Application process
When applying by written request, include the following information:
- A description of the company's business activities that create nexus
- A statement whether the company has or has not collected sales tax
- A statement that the Department of Revenue has not previously contacted the company relating to its registration status or any tax for which it is requesting voluntary disclosure
- A statement that the company is not under audit
To apply for the program, please complete the voluntary
disclosure e-form and the voluntary disclosure coordinator will contact
you. Voluntary disclosure can also be made through the Multistate Tax Commission
National Nexus Program.
Contact information
If your business is registered and you would like information about paying prior taxes, please visit our
Contact Us page or call (800) 647-7706.
If your business is not registered and you would like more information about our Voluntary Disclosure Program, contact:
Washington State Department of Revenue
Voluntary Disclosure Program
PO Box 47474
Olympia, WA 98504-7474
Phone: (360) 725-7590
Fax: (360) 586-7152
E-mail
Confidentiality
The Department of Revenue will maintain confidentiality of the Voluntary Disclosure
Agreement as provided in Revised Code of Washington
82.32.330. Persons viewing this site will remain completely anonymous. Please
read our
Voluntary Disclosure Disclaimer and
Privacy Statement for more information.
Other state, federal, and related sites
-
Have you contacted these other Washington State agencies?
- Have you contacted the Internal
Revenue Service (IRS)?
- Doing business in other states? Check out the following web sites: